Brazilian farmers remain concerned about the safrinha corn crop due to ongoing dryness.
In this week?s South American weather and crop update on the Iowa Agribusiness Radio Network, Allendale commodity broker Greg McBride says much attention is being paid to South America?s double-crop corn ahead of pollination.
?Dry weather is the predominant factor right now,? McBride said. ?That pretty well goes across the entire South American span. We?re looking at dryness for safrinha crop in Brazil. You will, and have, seen some production estimates decreased there. That is going to be friendly to the markets here. You?re also running behind on Argentine harvest for both corn and beans.?
Looking ahead, McBride says the short and long-term forecasts show the dry weather could be sticking around in South America?s major crop areas.
?This is traditionally about the time when their monsoonal flow ends,? said McBride. ?It does tend to go dryer as you go into the May timeframe. Because they were so far behind with their bean harvest in Brazil because of so much rain, their corn production is pushed back. That could be an issue as far as when they come into pollination in the next few weeks and months. This will be something to watch. Obviously, when you have production issues in one of your major competitors, that is a bullish signal. That can help to drive prices and it can also help to turn some of those exports towards us as well.?
South American harvest will continue to finish up in Brazil in the near term while shipping continues in Argentina with selling still slow. The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
